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$1.76 TRILLION – PwC’s incredible prediction for Blockchain

Photo of: Nathan VDH
by Nathan VDH

PwC economists estimate that the blockchain will account for 1.4% of global GDP in 2030, generating an increase of $1,760 billion. The traceability of goods is the main use of the blockchain.

The blockchain is nowadays widely developed in the field of finance. However, its potential lies elsewhere, according to the PwC firm. It estimates that the use of this technology will drive global GDP growth of 1760 billion dollars by 2030.

By that date, the blockchain would represent 1.4% of world GDP according to its economists. And it is primarily in the sector of the traceability of goods and merchandise that the blockchain will generate the most economic value.

PwC estimates in a report that the use case of “provenance” alone will be worth $962 billion. The blockchain “has enormous potential to help organizations verify the sources of their goods and track their movements at every stage, increasing transparency throughout the supply chain.

Of course, payments and financial services remain a major area for blockchain usage. PwC estimates this market to be worth $433 billion by 2030. The usage includes, among others, central bank currencies or CBDCs.

“Wholesale CBDCs can facilitate more efficient clearing transactions between central banks and their member banks, while retail CBDCs would effectively be the equivalent of a banknote, in digital form, for public use,” PwC points out, for example.

The company also highlights the experiments of financial institutions around stablecoins and other cryptocurrencies such as Bitcoin. These “new digital instruments” could help reduce transfer costs and speed up transactions.

“The blockchain has the potential to reduce costs, accelerate transactions and promote greater financial inclusion (…) These powerful innovations will transform the payments infrastructure for individuals, businesses and governments,” said Lucy Gazmararian of PwC.

Identity management, contract and dispute resolution and customer relationship management complete the top 5 uses of the blockchain. The firm estimates the contribution of the blockchain in these domains at $224 billion, $73 billion and $54 billion respectively.

But to generate this growth, economic sectors must look beyond Bitcoin and cryptocurrency, to which they often reduce the blockchain.